Step 3: Associating accounting codes with transaction types
Associate accounting codes with transaction types
You can link accounting codes (created in Step 2: Accounting code setup) to specific transaction types, for example, invoices, debit memos, and tax codes. These associations ensure accurate financial reporting by defining which accounting codes are used for debits and credits when transactions are posted.
Overview of default Accounting Code Association
The Accounting Code Association page allows you to associate default accounting codes to transaction types for both debits and credits. These mappings are essential for generating journal entries that feed into your General Ledger (GL).
For additional information on accounting codes, refer to Configure Accounting Codes.
Key features
-
Associate accounting codes with specific transaction types, such as invoices, debit memos, tax codes, and more.
-
Define Debit and Credit accounts for each transaction type.
-
Use a dropdown filter to view accounting code associations for specific transaction categories, for example, Tax and Revenue.
Understanding the interface
- The View accounting codes for dropdown filter:
Allows you to filter transaction types by category, such as Tax, Revenue, etc.
For example, selecting "Tax" displays all accounting code associations related to tax codes.
- Transaction Types:
Invoice Posted: Associations for transactions related to invoices.
Debit Memo Posted: Associations for transactions related to debit memos.
- Accounting code details: The columns include:
Active: Indicates whether the association is active.
Transaction Type: Displays the specific transaction type, for example, Country Tax Code, and CSI Tax Code.
Accounting Codes: Lists the associated accounting codes for the transaction.
- Debit: Specifies the debit account.
Credit: Specifies the credit account.
Edit button: Used to update accounting code associations for a selected transaction type.
Optimal methods for associating accounting codes
Maintain consistency: Ensure accounting codes are consistently applied across transaction types to maintain accurate and reliable financial reporting.
Activate relevant associations only: Disable any inactive or unused associations to prevent errors during transaction posting.
Review regularly: Periodically review your mappings to ensure they align with your current financial processes and GL structure.
Use filters for efficiency: Use the dropdown filter to focus on specific transaction types and simplify your review process.